anurag08

Investment Philosophy and Strategies - Damodaran.? Your investment philosophy is your set of core beliefs about how investorsbehave and the extent to which you consider the market to be efficient.? Your investment strategy should be designed to take advantage of pricing errors ?e.g. price momentum resulting from the herd mentality; market over-reaction tonews; mis-pricing due to lack of financial coverage. Basing a strategy on marketover-reaction to news is a short-term strategy whereas buying neglectedcompanies is longer term. Strategies become less successful the more they arepublicised.? Consideration of your strengths and weaknesses is important e.g. your attitude torisk. Also your time horizons.